SUMMARY REPORT

34thMEETING OF THE APEC SMEWG

Brunei Darussalam

25-26April 2012

1INTRODUCTION

The 34th Meeting of the Small and Medium Enterprises Working Group (SMEWG) was held in Brunei Darussalam on the 25th – 26th of April, 2012.

The meeting was attended by representatives from Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Peru; the Republic of the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United States of America; and Viet Nam. The APEC Secretariat was also present together with official guests from ABAC, EPWG and Macau, China.

The meeting was chaired by Dr. Robert Lai, Director General, SMEA, MOEA, Chinese Taipei.

2WELCOME AND OPENING REMARKS

Ms. Hajah Normah Suria Hayati binti Jamil, Permanent Secretary, Ministry of Industry and Primary Resources, Brunei Darussalam, and the SMEWG Chair welcomed delegates to the 34th SMEWG meeting. The Chair thanked member economies for their contributions and efforts made inter-sessionally toward the SMEWG, and laid out the objectives of the meeting.

3ADMINISTRATION AND LOGISTIC ARRANGEMENTS

Brunei Darussalam outlined the administrative and logistics arrangements.

4ADOPTION OF AGENDA

All member economies endorsed the agenda.

5INVITATION OF SUMMARY REPORT DRAFTING COMMITTEE

The Chair invited SMEWG members to join the Summary Report Drafting Committee. Economies that volunteered to assist the Mr. Diego Belevan were Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Peru; the Republic of the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; the United States of America; and Viet Nam.

6REPORT FROM THE APEC SECRETARIAT

Mr. Diego Belevan updated member delegates on the outcomes of key meetings relevant to the SMEWG.

7Russia 2012 APEC priorities and Themes of SMEMM

Mr. Igor Korelskiy from Russia outlined 2012 APEC priorities and SMEMM themes for the member delegates.

8SMEWG Work Plan 2012

The Chair’s Assistant outlined the SMEWG’s work plan for 2012, and presented the SMEWG deliverables for the year.

9SME Development Perspectives in Brunei Darussalam

Brunei Darussalam shared the current SME development strategies, priorities and opportunities in Brunei.

10Ease of Doing Business Best Practice Regulation Guide

Australia presented a recently published guide of best practices to improve business regulation in APEC member economies. The guide brings together the lessons learned and best practices discussed at each of the SMEWG coordinated Private Sector Development – Ease of Doing Business workshops held from 2007-2010. Australia; New Zealand; Hong Kong, China; and Canada co-sponsored the completion of the guide. The Best Practice Guide: Improving Business Regulation in APEC Member Economies is available online at: and economies are encouraged to distribute it through their networks.

11Assisting SMEs in Internationalizing Operations and Supporting the Export-Oriented SMEs

Lack of Access to Financing –APEC SME Trade Finance Conference

The United States reported on the upcoming SME Trade Finance Conference, which will tentatively be held in the Spring 2013 on the margins of 36th SMEWG Meeting in Philippines. The conference seeks to devise a set of recommended actions for APEC economies to take to improve their SME trade finance structure; engage trade finance and SME officials from APEC economies in an information-sharing discussion about their economy’s SME trade finance challenges, opportunities, and best practices; and facilitate enhanced coordination between SME organizations and trade finance agencies.

Need for Open and Transparent Business Environments-Business Ethics Capacity Building for SMEs in the Medical Devices, Construction and Bio-Pharmaceutical Sectors

The United States reported on the Business Ethics Workshop to help APEC economies draft voluntary codes of ethics for the medical device sector. Nineteen APEC economies participated in the workshop under the first phase of the multi-year project to build business ethics capacity in SMEs. The next workshop for the Biopharmaceutical sector will be held in July in St. Petersburg, Russia, on the margins of the 35th SMEWG Meeting

Reducing High Transportation and Related Costs

Chinese Taipei reported on the project to assist SMEs in transporting their goods and services reliably and cost-effectively. Chinese Taipei will hold a workshop on July 31st, 2012, on the margins of 35th SMEWG meeting to enhance the capacities of SMEs to cope with high transportation and related costs. In addition, Chinese Taipei will also draft a “Compendium of Innovative Strategies Available to SMEs for Reducing Transportation Costs" as the deliverable for the project.

Further Reduction of Trade and Investment Barriers for Small and Medium-Sized Enterprises in the Field of Intellectual Property

Russia reported on the initiative to reduce Intellectual Property (IP) barriers for SMEs. The initiative proposes to enhance the close collaboration of SMEWG and IPEG in the field of IP rights for SMEs, and to cooperate with IPEG to establish a set of actions to form an accessible system of projection document receipts. The results will be presented on the 35th SMEWG meeting and forwarded to the 19th SMEMM for endorsement.

Creation in Russia of the International Cooperation Center for SME Russia and APEC

Russia reported on the creation of an International Cooperation Center in Vladivostok (Russia) for APEC SMEs. The Center seeks to provide the most complete range of services for SMEs in one place, equal rights and opportunities for SMEs in obtaining supports, and provide customer-oriented services that constantly monitor customer satisfaction and requirements. The initiative received the support from the SMEWG.

Facilitation of New Business Creation with the Use of OVOP Method

Japan introduced a new project to promote women’s businesses with the use of the OVOP method, where the project seeks to 1) conduct a survey on “Women’s OVOP” best practices, and 2) hold a seminar in 2013 on “Women’s OVOP” best practices in Indonesia.

Thailand echoed Japan’s OVOP project, and shared best practices on OTOP. Indonesia also echoed Japan’s report on OVOP, and would like to cooperate with Chinese Taipei, Thailand and Japan to work on the OVOP related projects. ABAC echoed Japan’s Women’s OVOP project, and encouraged Japan to cooperate with ABAC Women’s Forum.

Reinforcing Inexorable SMEs from Disaster Management to Internationalization Promotion

Thailand then reported on the disaster management policies implemented to assist SMEs, such as the identifying support measure: 1) Investment in Flood Prevention and Water Management; 2) Business Continuity Plan; 3) Financial Access; and 4) Technical Assistant. Thailand reported lastly Thai economy regains its strength with quite a few encouraging economic numbers.

Indonesia echoed Thailand’s report on disaster management, and would like to cooperate with Thailand to assist SMEs in the region.

12SMEWG Projects

Mr. Diego Belevan highlighted SMEWG projects and self-funded projects for 2012, and reported on the funds available for projects in session III.

13.Report on New Projects (launched/submitted in 2012)

APEC Start-up Conference

To enhance the prospect for innovation, job creation, economic growth, and business opportunities in the APEC region, Korea will hold two conferences to share start-up policies and best practices to promote entrepreneurship in the APEC region. The roundtable conference will be held on June 11, 2012, and the Plenary Conference will be held on June 12, 2012.

Green Technology Initiative Establishing Support Facility for SMEs and Workshop

Indonesia reported on the Green Technology Initiative, which seeks to develop technology and business network in 2012, and will host a two-day conference promoting study on the state of the art of green technology and green technology database support system among APEC SME policy development officials and SME employees.

Seminar on the Dynamics of SME: Informality and Women Entrepreneurship

To discuss issues on development of SMEs in the region related to informality and women entrepreneurship and to establish and disseminate policy directions, Indonesia will host a seminar in September 2013, Bali. The workshop will seek to develop policies that facilitate capacity building for SMEs and the development of women entrepreneurs.

APEC Young Entrepreneur Network (YEN)

Russia proposes within the framework of SMEWG to implement a special format “Young Entrepreneurs Network (YEN)” that will meet on a regular basis. The network will have a number of aims including: 1) to provide better access to technology, information and professional guidance; 2) to create an open site for interaction and experience exchange; 3) to form common information and advisory fields; and 4) to promote an environment conducive to the growth and development for young entrepreneurs. Russia will hold the first meeting of YEN on August 2, 2012, on the margins of the 35th SMEWG meeting. The results of the first meeting of YEN will be presented in the 19th SMEMM.

The SMEWG recognized the importance of supporting the young entrepreneurs and business start-ups. The initiative was endorsed by the SMEWG.

The 7th APEC Small and Medium Enterprises Technology Conference and Fair

China reported on the 7th APEC Small and Medium Enterprises Technology Conference (SMETC), which is scheduled to be held in June 2012 in Chengdu City, China. The theme of the conference will be “Technology Boosts Economy; Cooperation Creates Future”. The purposes of the conference are: 1) to promote the technological exchange among APEC SMEs; 2) to enhance trade and investment cooperation among APEC members; and 3) to promote the overall development of APEC SMEs.

Green Initiative Workshop II

Korea reported on the Green Initiative Workshop II held on April 24, 2012. The workshop provided a venue for member economies to share their Green Action Plans (GAPs) and best practices, as well as an opportunity to discuss future plans and identify areas of cooperation among APEC economies.

Improving Natural Disaster Resilience of APEC SMEs to Facilitate Trade and Investment

Chinese Taipei introduced the new multi-year project that will begin in 2012 to enhance SMEs’ resiliency to natural disasters. The project will be implemented through three phases. In 2012, Chinese Taipei will: 1) conduct a survey to assess the status of business continuity plans in the APEC region; 2) hold a Focal Point Network Meeting and an Expert Meeting; and 3) hold a “Symposium on Promoting Business Continuity Plans to Enhance SMEs’ Participation in Global Production Chains”.

EPWG and Thailand echoed Chinese Taipei’s multi-year project on improving natural disaster resiliency, and are looking forward to cooperate with Chinese Taipei to implement the project.

14.Sharing Best Practice in Each Subtheme

Best practices under the each subtheme were presented by member economies as indicated in the following matrix:

BEST PRACTICES

Establishing Reliable Supply Chains / Russia:
Enhancing SMEs Participation in Global Production Chains by Creation Common Database
Australia:
Assisting Australian SMEs in Supply Chains
China:
Introduction of Development of Industrial Clusters in China
Japan:
Business Continuity Plan for SMEs
Easing Access of SMEs to Financing / Hong Kong, China:
Hong Kong, China’s Experience in Easing Access of SMEs to Financing
Indonesia:
Easing Access of SMEs to Finance Through Group Lending Model
Peru:
Access of SME to financing in Peru
Canada:
Easing Access to Financing on the Canadian Youth Business Foundation (CYBF)
Fostering the Innovative and Green SMEs / Russia:
Exchange of Best Practices Related to Functioning of Technology Parks as an Instrument for Support Innovative SMEs
Australia:
Clean Technology Innovation Program
Indonesia:
APEC Workshop on SMEs’ Access to Technology

All presentations are available on APEC Meeting Document Database (MDDB) at

13Reviewing Strategic Plan 2009-2012

All the Champion Economies for the Strategic Plan priorities reported on the contributions of the SMEWG projects from 2009-2012.

Brunei Darussalam suggested adding a point on facilitating collaboration with ABAC in the response to the independent assessment.

The SMEWG endorsed the Response to the SCE Recommendations from the 2011 Small and Medium Enterprises Working Group (SMEWG) Independent Assessment. The Chair will present the report to SCE2.

14Reporting the Draft Proposal of the SMEWG Strategic Plan 2013-2016

The Chair’s Assistantreviewed the progress of the SMEWG Strategic Plan 2009-2012 and the key outcomes of the Strategic Plan drafting committee meeting held before the SMEWG meeting. The draft proposal of the SMEWG Strategic Plan 2013-2016 was presented.

The APEC Secretariat suggested SMEWG to re-establish the Project Assessment Standing Committee to assist member economies to develop concept notes and projects.

15Statements by Official Observers and other APEC Fora

Presentation by EPWG

The Co-Chair of EPWG reported on the new initiatives and activities to be carried out in 2012, and would like to cooperate with SMEWG to carry out the initiatives. The Co-Chair also invited SMEWG delegates to attend EPWG planned activities.

Presentation by ABAC

ABAC reported on the highlights of SME related activities, and extended an invitation to SMEWG member delegates to participate in ABAC’s upcoming activities in 2012. ABAC also stated the importance of cross-fora collaboration between SMEWG and ABAC, where ABAC would like to cooperate with SMEWG on projects and activities to enhance the capacities of SMEs in the region.

Presentation by Macau, China

Macau, China thanked SMEWG for the contributions and dedications made to the SMEs in the region.

16Host of Next SME Working Group and SME Ministerial Meeting

Presentation by Russia on the 35th SMEWG Meeting and 19th SMEMM

Russia provided a report onpreparations for the 35th SMEWG Meeting and the 19th SMEMM, which will be held in July-August in St. Petersburg, Russia. Russia also presented a tentative timeline forkey meeting documents, such as the SME Ministerial Statement, to be drafted.

Presentation by Philippines on the 36th SMEWG Meeting

The Philippines introduced the tentative venue for the 36th SMEWG Meeting, which will be held on 13th -14th March 2013.

Presentation by Indonesia on the 37th SMEWG Meeting

Indonesia reported on the themes and venue for the 37th SMEWG Meeting. The Meeting will be held on 4th-5thSeptember 2013 in Bali, Indonesia.

Invitation to Host Meeting in 2014

The Chair welcomed member economies to volunteer to host SMEWG meetings in 2014.

17SMEWG Chair for 2013-2014

The Chair welcomed Thailand to be the Chair of SMEWG for 2013-2014, and invitedDr. Winmonkan Kosumas, Deputy Director General, Office of Small and Medium Enterprises Promotion, Thailand to deliver remarks on behalf of the Director General.

18Chair’s Closing Remarks

The Chair summarized the discussions and outlined the key outcomes of the meeting.

The Chair expressed appreciation to the host, Brunei Darussalam. The Chair also thanked all economies for their active participation, which enabled the meeting to be conducted effectively, and looked forward to meeting member economies at the 35th SMEWG meeting.